Document of

THE WORLD BANK

FOR OFFICIAL USE ONLY

INTEGRATED FORESTRY DEVELOPMENT IN THE

MIDDLE EAST AND NORTH AFRICA

May 30, 2003

Water, Environment, Social and Rural Development Department

Middle East and North Africa Region

TABLE OF CONTENTS

Page

I. Background 1

The Global Public Goods Funds Imitative 1

Objectives and Expected Output 1

II. The MNA Region 2

Status of Forestry 3

Importance of Forestry 5

Forest Management 7

The Forestry Institutions 8

Government Strategies 9

Forestry Development : Potential and Constraints 11

Potential 11

Environmental Benefits 11

Direct Productive Functions 12

Constraints 14

Addressing the constraints 16

III. Next Steps 20

Table 1: Land area, population trends and country economic indicators 2

Table 2: Forest Statistics on the Bank Client Countries in the MNA Region 5

Table 3: Consumption of, and Estimated Imports of Wood Products in 2000 13

Table 4: Land Area And Rural Population In Tunisia And Morocco 19

Table 5: Land Ownership Statistics In Morocco And Tunisia 21

Box 1: Integrating Forestry Development Into The Broader

Natural Resources Management Agenda 15

Box 2: Categories of land ownership 20

Box 3: Inequitable Land Distribution And Fragmentation 22

Annex 1: Land Ownership and Integrated Forestry Development:

The Case of Morocco and Tunisia 19

Addressing the Constraints 24

Next Steps 25

Abbreviations and Acronyms

ESW Economic and Sector Work

FAO Food and Agriculture Organizations of the United Nations

GDP Gross Domestic Product

GPG Global Public Goods Funds Imitative

IFPRI International Policy Research Institute

MNA Middle East and North Africa


Preface

This informal Policy Note was prepared by a Team comprising Jean-Marc Bison, Agricultural Economist, FAO, T. Ngaido, Land Tenure Specialist, IFPRI and Idah Pswarayi-Riddihough, World Bank, Task Team Leader and reviewed by John Spears, ARD and John Bruce, LEGEN. Petros Aklilu, Sector Manager provided overall guidance.

This note is intended to form the basis for dialogue on integrated forestry issues in MENA with particular reference to land ownership in Morocco and Tunisia. We hope the note will trigger the need for establishing a regional strategy and development for the fragile Natural Resources Management in MENA region.

Letitia A. Obeng

Sector Director

Water, Environment, Social and Rural Department Middle East and North Africa Region

26

I. BACKGROUND

The Global Public Goods Funds Imitative (GPG)

1.  This Policy Note discusses the status of Forestry in the Middle East and North Africa Region (MNA) of the Bank. The Policy Note is a product of the FAO Investment Center in Rome[1], the International Food Policy Research Institute (IFPRI[2]) and the Bank [3]. Experience in natural resource management shows that to adequately address sustainable development, solutions must go beyond any single sector and be cross-sectoral. They must also go beyond technical solutions to include legal and policy frameworks. In the MNA Region, a large percentage of the population lives in rural areas on primarily small pieces of land and in the absence of other sources of revenue to supplement their income. Also because many do not own their land, they are without the means to improve their small land areas to increase output and revenues, thus creating a dependence on the natural resources. Land ownership, as a factor having a potential impact on integrated forestry development, is discussed in Annex 1, using Morocco and Tunisia as illustrations.

2.  This Policy Note was made possible through funding provided by the GPG who recognized that to implement a new strategic approach to forests would require a broadening of the Bank’s coverage of forest issues resulting in these issues being incorporated more effectively into country assistance strategies, factored into large scale Bank engagements in cross-sectoral programs which can impact upon forests (rural development and infrastructure), and built into economic adjustment, poverty reduction support programs and similar economy-wide activities to improve outcomes from forests. Moreover, to re-engage in activities focused more directly on such issues will require a more proactive policy and strategic approach, involving the removal of some of the disincentives noted by OED.

3.  Over the last 2 decades, the Bank’s involvement in forestry has been gradually declining. GPG funds were awarded to regions interested in initiating Economic and Sector Work (ESW) as an initial step to increasing Bank assistance for forestry activities. As these funds were mainly for exploratory purposes, it was decided to carry out a short analysis on land issues in Morocco and Tunisia, because the issue is linked to forestry development and to integrated natural resource management as a whole, and must be addressed to improve rural development. In addition, the Bank has largely remained uninvolved in land tenure issues in Morocco and Tunisia although there is a high potential for the Bank to add value given its significant knowledge on land issues.

4.  In addition to funding these exploratory analyses, GPG funds were also intended to result in three key activities: (a) develop demand by building interest in forest sector investments through ESW, and subsequently working with the governments to develop appropriate policy, institutional and related inputs. In the recent decade, forest related ESW has declined precipitately from more than $3 million to approximately $850,000 per annum. This trend will have to be reversed if the awareness and potential of forests and the benefits they offer are to be realized; (b) catalyze engagement and investment. Identify or develop instruments that have flexible funding for forestry activities, and for financing stakeholders, provide consultations as part of the process; and (c) build Partnerships to increase participation – as well as to enhance the Bank’s own ESW work. Building the level of knowledge of all agencies involved to increase development effectiveness.

Objectives and Expected Output

5.  The purpose of this Policy Note is to assess the status of forestry in the MNA Region which would then be used as a precursor to preparing a Regional framework for integrated natural resource management. This framework would serve to build momentum and consensus toward appropriate reforms for sustainable development with the countries involved. The present Policy Note is aimed at giving an overview of the situation concerning forestry in the MNA Region. Land ownership, given its potential impact on integrated forestry development, is also discussed. This paper is intended for internal distribution for knowledge sharing purposes and it has not been discussed with the countries concerned. However, this could be done at a later stage depending on the follow-up given to the Policy Note. Nevertheless, the conclusions drawn from this Policy Note are highly informative and sufficiently clear on next steps.

II. The MNA Region

6.  The MNA Region, as defined in this Policy Note, covers 17 low and middle-income countries: Algeria, Bahrain, Republic of Egypt, Islamic Republic of Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and the Yemen Republic. Algeria, Morocco and Tunisia make up the Maghreb (meaning sundown) while the others constitute the Mashreq (meaning sunrise).

7.  In an area covering over 1.1 billion ha, MNA supports approximately 300 million people, some 40 percent of whom live in rural areas. Table 1 below presents the estimated statistics on land area, population and economic indicators for the MNA countries during the period 1994 through 2000. The national economies are quite diverse from relatively rich oil-producing to very poor countries. For 2000, the estimated GDP per capita varied from US$3,837 in Lebanon to US$486 in Yemen. According to the fragmented data available, it would seem that only Egypt, Iran, Lebanon, Malta, Syria and Tunisia have GDP growth rates that are higher than their population growth.

Table 1. Land area, population trends and country economic indicators

Country / Land Area / Population (2000) / Economic Indicators
Total / Total / Density / Average annual growth / Rural population / GDP per capita / Agriculture (% of GDP) / GDP per capita average annual growth
1998 / 1994-2000 / 2000 / 1900-2000
000 ha / millions / Pers/km2 / % / % / US$ / % / %
Algeria / 238,174 / 30.40 / 13 / 1.7 / 40 / 1,753 / 9 / -0.1
Bahrain / 69 / 0.69 / 1,000 / 3.6 / 8 / Na / Na / Na
Egypt / 99,545 / 63.80 / 64 / 1.9 / 55 / 1,547 / 17 / 26
Iran / 162,201 / 64.00 / 39 / 1.6 / 38 / 1,547 / 20 / 1.9
Iraq / 43,737 / 23.30 / 53 / 23 / 23 / Na / Na / Na
Jordan / 8,893 / 4.90 / 55 / 3.1 / 26 / 1,694 / 2 / 1.0
Kuwait / 1,782 / 2.00 / 112 / 4.6 / 3 / Na / Na / Na
Lebanon / 1,024 / 4.30 / 420 / 1.6 / 10 / 3,837 / 12 / 4.2
Libya / 175,954 / 5.50 / 3 / 22 / 12 / Na / na / Na
Morocco / 44,630 / 28.70 / 64 / 1.7 / 44 / 1,167 / 13 / 0.4
Oman / 21,246 / 2.40 / 11 / 24 / 16 / Na / Na / Na
Qatar / 1,100 / 0.58 / 53 / 26 / 7 / Na / Na / Na
Saudi Arabia / 214,969 / 20.70 / 10 / 26 / 14 / Na / Na / Na
Syria / 18,377 / 16.10 / 88 / 27 / 45 / 1,056 / 26 / 29
Tunisia / 16,362 / 9.60 / 59 / 1.4 / 34 / 2,031 / 12 / 3.0
United Arab Emirates / 8,360 / 2.90 / 35 / 4.0 / 14 / Na / Na / Na
Yemen / 52,797 / 17.50 / 33 / 28 / 75 / 486 / 15 / 23
Total / 1,109,220 / 297 / 20 / 40

Source World Bank Country Data : Key: na = not available

8.  MNA includes a diversity of ecological environments ranging from arid and semi-arid areas with low/variable rainfalls to the more humid areas having a Mediterranean climate characterized by long/dry summers and mild/wet winters. These latter areas account for less than 10 percent of the land but almost half of the population, while the drier areas account for nearly 90 percent of the land but less than 30 percent of the population.

9.  The main crops of the region (wheat, barley, legumes, olives, grapes, fruits and vegetables) are grown during the wetter winter period while irrigated crops are grown all year round[4]. Livestock (mainly sheep and goats) is an important feature of many farming systems, from extensive pastoralism to feedlots in peri-urban agriculture. A limited supply of water – and/or lack of access– both in terms of quantity and quality, reduces considerably the potential for increasing agricultural production.

10.  Of the total population, probably more than a quarter are directly dependant on agriculture, including forestry. However, the importance of agriculture in the national GDPs varies greatly depending on each country. For instance, in 2000, the agricultural GDP ranged from 2 percent of the total in Jordan to 26 percent of the total GDP in Syria. Furthermore, unemployment and/or underemployment are pervasive in almost all the MNA countries which has tended to encourage emigration to other countries, especially Western Europe [5].

11.  The Region is also characterized by rapid increases in the population, essentially due to improved child survival rates and lower adult mortality. However, this has continued to place undue stress on the limited natural resources. While it is estimated that only 2 percent of the population falls below the poverty line of US$1 per day, more than 30 million people would still be undernourished[6]. Poverty is more widespread in rural areas than urban areas and it concerns primarily small farmers and pastoralists whose income is constrained by low productivity and few crop/livestock options due mainly to limited soil/water resources, unpredictable rainfall[7], and substantial resource degradation.

12.  Population. Population growth rates in Morocco and Tunisia are relatively low when compared to other MNA countries [8]. Nevertheless, the rural population (and livestock) is increasing in number, which is increasingly putting pressure on land tenure systems given the limited amount of arable lands available. In addition to more cropping in marginal areas and environmental degradation, population pressure is also blamed for being the fundamental cause of the numerous land disputes and excessive co-ownership (both mostly unrecorded) as well as land fragmentation. Migration to urban areas is not a viable solution since there are few additional sources of jobs available in the cities. Therefore, planning and economic growth are the lasting solutions.

Status of forestry

13.  General description. The definition of forests could be drawn from the type of ecosystem, utilization and/or tenure. The term forests in this Policy Note is used to refer to both commercial type timber, such as that found in pure stands of natural or planted forests, and to mixed woodlands, shrub-lands, plantations along watersheds, esparto grass and permanent pastures. In general, the MNA Region is made up of low forest cover countries, i.e. with forest areas covering less than 10 percent of their respective territory. From the agro-ecological point of view, four main ecological forest zones are recognized: